This is the second article in a three-part blog series on first time home buying tips. So far we’ve covered Part 1.

First Time Home Buying Tips – Financial Details to Consider Before Buying

…Seller subsidies are very useful when it comes to being able to afford a home purchase, but the thing to keep in mind is that this isn’t just free money. Writing an offer that includes a seller subsidy is the same as offering the seller a lower sales price, since a seller subsidy reduces the net proceeds that a seller makes at Settlement.

- Earnest Money Deposit – Your deposit demonstrates your good faith in purchasing the home. It is typically around 1% of the sales price, and it goes toward your down payment or closing costs. After there is a signed contract between you and the seller, your deposit check is deposited and held until Settlement. Should you cancel the contract for any contractually legitimate reason (i.e. after your home inspection or if your home loan is denied), your deposit check is refunded to you.

- Home inspection fee – If you’re buying a home in Northern Virginia, you should always get a home inspection. Your inspection happens after a contract is signed, and depending on the size of home you purchase, it could be anywhere from $350 to $650 or more.

Read Part 3 of my blog series on first time home buying tips. We’ll cover the other “up-front” costs that you need to consider when buying a home.

Email me at DarrenRobertsonHomes@gmail.com for a list of the top 10 first time home buying tips to consider when purchasing a Northern Virginia home.